Bill Is Reviewing the Firms Whose Stocks Have Comprised the Dow

question 65

Multiple Choice

Bill is reviewing the firms whose stocks have comprised the Dow Jones Industrial Average over the years. He discovers

• A) the same 30 stocks have been used since the inception of the indicator.
• B) different companies are used each year.
• C) these stocks change periodically as deemed appropriate.
• D) there is an even mix between big and small companies.

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Definitions:

Slope

Measures the steepness, incline, or grade of a line on a graph, representing the rate of change of the variables plotted on the axes.

Indeterminate

An outcome or situation that cannot be definitively determined or predicted due to the presence of too many unknown variables.

Straight Line

In geometry, the shortest distance between two points, characterized by its uniform direction and infinite length in both directions.

Vertical

A term used in economics and business to describe activities or entities that operate at different stages of the production process, from raw materials to final product.